Ukraine wants to seize Gazprom assets in Europe

Business in Ukraine -- Ukraine wants to seize Gazprom assets in Europe

#Ukraine initiated a #procedure for #seizing #assets of #Gazprom in the #Netherlands, #Switzerland and the #United Kingdom to enforce the USD 2.6 billion #Stockholm #arbitral award granted to Ukrainian #Naftogaz. The #Dutch, #Swiss and #British authorities reportedly backed moves to confiscate the holdings of the Russian gas giant in their respective countries.

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Ukraine is now trying to seize Gazprom assets in the Netherlands, Switzerland and the United Kingdom. According to Ukrainian President Pertro Poroshenko, these could also include assets and shares of Nord Stream and Nord Stream 2.

On 5 June 2018, the Ukrainian national oil and gas firm Naftogaz made a statement that a Dutch court granted the assets freeze of the Russian gas producer in the Netherlands following the Swedish arbitral award in favour of the Ukrainian state-owned company which ordered Gazprom to pay a compensation of USD 4.63 billion to Naftogaz to settle the gas transit lawsuit. Naftogaz reported that the Dutch court approved the petitions; however, six out of seven of the Dutch subsidiaries of Gazprom refused to cooperate with the enforcement authorities.

At the end of February, the Stockholm-based arbitration court awarded Naftogaz USD 4.63 billion from Gazprom because Gazprom had failed to supply Ukraine with the agreed amount of natural gas for several years. According to the statement made by Naftogaz, USD 2.1 billion were offset by the payment for gas supplied to Ukraine earlier, while remaining USD 2.6 billion are now being sought from Gazprom’s subsidiaries.

Furthermore, Naftogaz announced that it had initiated the enforcement of the Stockholm arbitral award in Switzerland and the United Kingdom. The Swiss and British authorities reportedly backed moves to seize Gazprom assets in both countries.

On the other hand, Gazprom announced that it had appealed the ruling of the Swedish arbitration court, partly because it allegedly was not the arbitral tribunal itself but its assistant who drafted the award, which would be a violation of the applicable arbitration rules.

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